Turkey: Current account deficit continues to narrow
August 13, 2012
In June, the current account balance incurred a deficit of USD 4.3 billion. The figure undershot the USD 7.7 billion deficit recorded in the same month last year but matched market expectations. As a result of the monthly result, the 12-month trailing current account deficit narrowed for the eighth consecutive month, falling from USD 66.9 billion in May to USD 63.5 billion in June (approximately equivalent to 8.3% of GDP). Exports expanded 19.5% in USD terms over the same month last year, slightly below the 21.2% increase recorded in May. Meanwhile, imports contracted 5.9%, contrasting the 2.5% expansion observed in May. As a result, the trade deficit reached USD 5.7 billion in June, down from the USD 9.2 billion deficit recorded in the same month last year.